NongHyup Financial Group’s Third Productive Finance Project Focuses on Agri-Food

by Oh Kuemin

Published 09 Dec.2025 08:11(KST)

Fund Size to Expand from 410 Billion Won to 1 Trillion Won

NongHyup Financial Group announced on December 9 that it has decided to focus its third Productive Finance project on investments in the agricultural sector.

NongHyup Financial Group plans to consolidate its affiliates’ previously separate efforts in agri-food company investment, lending, distribution, and market support into a group-wide “K-Food Scaling Up Program.” The group will expand its current 410 billion won agri-food fund-established by NH NongHyup Bank, NH Investment & Securities, NH NongHyup Capital, and NH Venture Investment-up to 1 trillion won over the next five years. This expansion aims to strengthen investment in innovative companies leading the future of the agri-food industry, including smart agriculture, food technology, and green bio.

In particular, NH NongHyup Bank is focusing on revitalizing the agri-food fund to support the startup and investment ecosystem for agri-food companies and to help the agricultural industry establish itself as a future growth sector. Recently, as a specialized financial institution for agri-food investment, the bank was selected as a general partner (GP) for a 50 billion won agri-food parent fund in June of this year. Last month, it became the first bank to be chosen as the sole manager of an agri-food parent fund (worth 20 billion won).

NH NongHyup Bank has introduced and is operating a machine learning (ML) model specialized in agri-food to strengthen investment and inclusive finance in areas such as innovative companies, smart farms, and green growth. As a result, loans to agri-food companies amounted to 30.29 trillion won, accounting for 24.1% of the bank’s total corporate loans. This figure represents an increase of 610 billion won compared to the end of last year. As the model’s discrimination ability improved, the delinquency rate decreased by 0.22 percentage points year-on-year. By providing preferential interest rates and increased credit limits to outstanding agri-food companies based on artificial intelligence algorithms and various alternative data, the bank aims to further expand productive finance and continue to revitalize local agricultural economies.

NongHyup Financial Group 'Productive Finance No. 3 Project' Key Details. NongHyup Financial Group

NH Investment & Securities will continue to promote its “Farmer Market Support Program,” which aims to improve farmers’ actual income and secure distribution infrastructure. This program provides young farmers with online retail sales experience to help them build competitiveness in the market.

Lee Chanwoo, Chairman of NongHyup Financial Group, stated, “The establishment of the agri-food fund and the farmer market support program will become representative examples of NongHyup Financial Group’s ‘productive finance.’ We will become the only financial group responsible for the entire agri-food ecosystem, from discovering and investing in agri-food companies to providing market access for farmers.”

Kang Taeyoung, President of NH NongHyup Bank, said, “We will continue to establish agri-food funds in the future to actively support innovation and growth in the agricultural industry. By utilizing NH NongHyup Bank’s unique expertise in agri-food investment and its specialized ML model, we will contribute to expanding productive finance in the agricultural sector.”